Special Guarantee Agreement Signed for Small Business Owners and SMEs Lacking Collateral
Low-Interest Loans Worth 26.25 Billion KRW Available at Four Banks
Regional Economic Revitalization and Commercial District Recovery Set as Top Priorities
Yeongdeungpo-gu (District Mayor Choi Ho-kwon) announced that it has signed a business agreement with the Seoul Credit Guarantee Foundation and four banks to support a special guarantee worth 26.25 billion KRW for small business owners and SMEs who have difficulty obtaining loans due to insufficient collateral.
On the 20th, the district signed a "Special Contribution Business Agreement for Regional Economic Revitalization" with the Seoul Credit Guarantee Foundation and Woori, Shinhan, Hana, and Kookmin Banks. The district and the four banks contributed a total of 2.1 billion KRW to the Seoul Credit Guarantee Foundation, which will provide a special guarantee worth 26.25 billion KRW, 12.5 times the contribution amount, to small business owners and SMEs in the region.
This support is expected to provide practical help in alleviating management difficulties by enabling small business owners and SMEs struggling due to the economic downturn to receive low-interest loans.
Small business owners, etc., can obtain loans from Woori, Shinhan, Hana, and Kookmin Banks using credit guarantees issued by the Seoul Credit Guarantee Foundation. The loan interest rates range from 2.74% to 2.94% (variable interest rates based on the CD rate), and the repayment periods can be chosen from ▲ 1-year grace period with 2, 3, or 4 years of equal installment repayments ▲ 2-year grace period with 3 years of equal installment repayments ▲ 2-year lump-sum repayment at maturity. However, the guarantee limit may vary depending on credit rating, sales, and other factors. For detailed information, inquiries can be made to the Yeongdeungpo branch of the Seoul Credit Guarantee Foundation.
The district prioritizes regional economic revitalization and commercial district recovery, promoting various policies such as expanding the scale of SME development fund loans, permanently opening win-win markets with traditional markets and small business owners, and issuing gift certificates for the public delivery app "Ttaenggyeoyo."
Choi Ho-kwon, Mayor of Yeongdeungpo-gu, stated, "We hope this will help small business owners and SMEs, the core of the regional economy, overcome the difficult economic situation," and added, "We will continue to prepare various support measures that provide practical help for their business stability."
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